Saudi Arabia's strategic location and large-scale infrastructure development will position the Kingdom as one of the world's leading transport and logistics hubs, according to a report of Saudi Arabian General Investment Authority (SAGIA). With its unique strategic location straddling the markets of east and west, KSA is recognizing its potential as a leading global transport and logistics hub. The nation already boasts numerous land and sea routes to Eastern Europe, the Indian subcontinent, the Middle East and North Africa plus East Asia. However, SAGIA, in collaboration with domestic and international partners, is now making substantial investments in a sophisticated transportation network that will leverage KSA's competitive advantages. Saudi Arabia's rapid domestic development spearheaded by the planned Economic Cities means there's strong demand for sector growth. The cities alone could contribute an additional 86-129 million tons per annum (or approximately 30% of the expected growth in cargo flow through KSA). Saudi Arabian domestic cargo demand is expected to grow by a 4-5% compound annual rate through 2020, while international flows are expected to grow at 5% and 7-8% for air and sea cargo, respectively. The development of a world-class, multi-modal transportation system in Saudi Arabia will improve operating efficiencies and speed to market for businesses looking for strategically located transportation systems for distribution and/or supply chains. Naturally, the availability of low-cost fuel is a key factor making it an ideal site to centralize energy intensive logistical activities, such as refueling. --MORE
